The Consumer Financial Protection Bureau (CFPB) has issued a proposal that would institute new foreclosure protections for consumers throughout the life of a loan and prevent a wrongful foreclosure sale, as well as fix problems with loan transfers and clarify the meaning of a delinquency.
“Some of these are best practices that servicers have been doing anyways, like offering foreclosure protection if a loan goes delinquent again,” said Colgate Selden, counsel in the firm’s Financial Services & Products Group, who worked at the CFPB. “Depending on how the rule is finalized, it could provide foreclosure protections that might open up room for abuse by borrowers so that is something everyone will want to take a close look at during the proposal stage.”
The proposal will be open for public comment for 90 days after it is published in the Federal Register.
“Some of these are best practices that servicers have been doing anyways, like offering foreclosure protection if a loan goes delinquent again,” said Colgate Selden, counsel in the firm’s Financial Services & Products Group, who worked at the CFPB. “Depending on how the rule is finalized, it could provide foreclosure protections that might open up room for abuse by borrowers so that is something everyone will want to take a close look at during the proposal stage.”
The proposal will be open for public comment for 90 days after it is published in the Federal Register.